U.S. stocks closed higher for a fourth session Wednesday, with the SP 500 in its longest winning streak since Sept. 14, on reports that the U.S. and China have narrowed differences over trade. Minutes from the December’s Federal Open Market Committee meeting, which indicated caution on future interest rate hikes, also helped to buoy sentiment.

How did major benchmarks fare?

The Dow Jones Industrial Average

DJIA, +0.39%

DJIA, +0.39%

rose 91.67 points, or 0.4%, to 23,879.12, its best series of gains since Nov. 8, while the SP 500

Major indexes ended off intraday highs but the SP 500 and the Dow are moving closer to levels to exit correction territory.

What drove the market?

Asian and European stocks rallied, with U.S. oil prices climbing above $50 a barrel, on optimism over trade talks between the U.S. and China. The latest round of talks wrapped up Wednesday, with investors zeroing in on some positive chatter.

A Bloomberg report that cited White House sources saying President Donald Trump was eager to see a China deal helped to drive gains for stocks.

However, ratings company Fitch warned that the U.S. could lose its triple-A sovereign credit rating if government dysfunction leads to brinkmanship over the country’s debt limit. The warning came as a partial U.S. government shutdown continued and after a televised speech Tuesday night by Trump failed to narrow differences between the White House and Democrats over the administration’s demand for funding to build a wall on the U.S.-Mexico border.

Investors gorged on a heavy diet of policy commentary.

The release of Fed minutes revealed that some central-bank officials hard reservations about an interest-rate increase last month due to market volatility, though policy makers voted unanimously in favor of the move. They also recommended the Fed should be “patient” and stressed that “a relatively limited amount of additional tightening” is appropriate.

St. Louis Fed chief and FOMC voter James Bullard said in an interview with The Wall Street Journal “we’ve got a good level of the policy rate today,” adding that there isn’t an immediate need to raise rates any higher, while he is open to cutting rates if the economy slowed.

Atlanta Fed Chief Raphael Bostic, a nonvoting member of the Fed’s rate-setting committee, said the central bank should be patient about lifting rates given worries about tariffs and other signs of stress in the market.

Chicago Fed President Charles Evans, a voter, said that he sees as many as three hikes going forward, while arguing the Fed is likely to “eventually” move monetary policy into restrictive territory. He said that the central bank could wait as much as six months before making their first rate increase.

What were analysts saying?

Larry Benedict, CEO of the Opportunistic Trader, told MarketWatch that “we’re in the midst of a buy panic. Investors are pricing in all good news on all fronts,” and shrugging off the negative.

Benedict warned that the nearly 10% jump in the SP 500 since Dec. 24 puts markets “at fair value right now, and maybe a little high,” a dynamic that could set stocks up for a fall in the event of bad news on the trade front or as earnings season begins.

The extension of U.S.-China trade talks to a third day was “interpreted by the markets as a sign of progress,” said Jasper Lawler, head of research at London Capital Group, in a note.

“Comments coming from both parties continue to indicate that the talks are, so far going ‘very well.’ A deal is likely to still be a long way off, with many twists and turns still to overcome along the way,” he said. “However, the extension is a step in the right direction, sending a signal that the two sides are in serious negotiations and are working hard to resolve the issues.”

Which stocks were in focus?

Shares of Chesapeake Energy Corp.

CHK, +12.65%

jumped 13% after the oil-and-gas company provided a fourth-quarter production outlook that was above expectations.

TechnipFMC PLC

FTI, +2.64%

stock gained 2.6%, after the oil-field services company announced a six-year offshore agreement with Saudi Aramco.

Shares of Constellation Brands Inc.

STZ, -12.42%

slumped 12% after the beer, wine and spirits company issued disappointing guidance for fiscal 2019.

Acuity Brands Inc.

AYI, -2.82%

shares fell 2.8% even after the lighting and building management company reported fiscal first-quarter earnings and sales that rose above expectations.

Apple Inc.

AAPL, +1.70%

shares rose 1.7%. Reports indicated that the tech behemoth was set to cut iPhone production by 10% this quarter. But Chief Executive Tim Cook, during a CNBC interview on Tuesday, described the long-term health of the company as “never been better,” and said the ecosystem around the company’s roster of products has “never been stronger.

Read: Apple remains a dominant market force, even with all its China woes